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Migration with Pension Reform Expectations

Author

Listed:
  • Góra, Marek

    (Warsaw School of Economics)

  • Ruzik-Sierdzińska, Anna

    (Warsaw School of Economics)

Abstract

Pension reforms, which imply a reduction in the generosity of pension benefits, are becoming widespread in response to the demographic transition. The scale, the timing, and the pace of these reforms vary across countries. In this theoretical article, authors analyse individual migration decisions, by adding a component linked to the expected old-age pension benefits in sending and receiving countries in two cases: when the pension system rules are known, and when there is a risk of the pension systems reforms. The results indicate that when individuals fail to take future pension wealth into account, they can make sub-optimal migration decisions.

Suggested Citation

  • Góra, Marek & Ruzik-Sierdzińska, Anna, 2018. "Migration with Pension Reform Expectations," IZA Discussion Papers 11960, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11960
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    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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